Case Study: Flextronics International Essay

615 WordsOct 1st, 20123 Pages

Flextronics Case Summary

Flextronics International case study discusses the challenges that the CEO, Michael Marks, faces in a global economy where the technology industry keeps changing at a rapid pace. Flextronics is trying to discover a new identity and not just manufacture a product for customers, but design and sell a phone to potential customers.

Flextronics went from taking the designs from companies and building them, to developing their own designs. Marks needed to decide if creating a phone and bringing it to a customer would hurt relationships with other customers that he “builds” phones for. By doing this, Flextronics would offer a phone exclusively through one customers leaving other clients potentially upset by the…show more content…

Each OEM has a design style that symbolizes its company (i.e. Apple) and by using a EMS’s design, you are at the mercy of what the EMS believes the customer wants and not by what the OEMs marketing research says. I believe you could also run into poor quality from a EMS’s design as they are working at reducing costs and not picking the best materials. EMS may go for more function vs. design.

3. Do you believe that moving into the ODM market is a good idea for Flextronics? If yes, explain your rationale, and decide whether you would grant an exclusive relationship for Phone 4. If not, what alternate strategy would you recommend?

I think the moving to ODM may create some positives and negatives. Positives could lead to such a great design that the consumer loves your design and you bring an exclusive agreement to a OEM that you now have complete design control over the OEM and they will keep signing that exclusive agreement.

The exclusive agreement has now upset your other OEM customers and they will start outsourcing to another EMS company.

After reviewing this case study and understanding how the current phone market works. I think that Flextronics can afford to gamble on signing an exclusive agreement with a OEM. Each OEM has a different phone and you don’t see many look a likes with different OEMs.

I also think that this will ultimately allow the OEM Flextronic chooses to

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